With the price of electricity and gas bills skyrocketing, the National Confederation of Industry asks Bolsonaro to exempt federal taxes on electricity for 90 days

Investors, consumers and industries are on the alert with the rise in the price of electricity and natural gas in times of a pandemic, leading the government of Jair Bolsonaro to deal with requests for relief from charges and taxes that weigh on consumers' pockets on their bills. light.

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Aneel is working so that prices on the electricity bill do not rise even further – which point to an increase of more than 10% in electricity rates in 2021. The agency has already postponed readjustments for distributors such as CPFL and Energisa.

“Everything worries. On the one hand, we have to recognize this extremely delicate and difficult moment due to the pandemic. On the other hand, any alteration in the regulatory and tariff process would generate very serious legal uncertainty”, said the president of the study center Acende Brasil, Claudio Sales.

Industry representatives have shown concern about a trend towards a sharp rise in costs on electricity bills, which impact even large companies that acquire energy in bilateral negotiations on the free market.

According to the CNI's proposal, the Union should assume the costs with charges for 90 days, also eliminating federal charges.

To boost the recovery of the economy in a time of crisis caused by the coronavirus, the National Confederation of Industry (CNI) said that it has defended with the government measures to reduce spending on electricity.

"One of the suggested measures is the exemption of federal taxes and sector charges that affect the electricity bill for a period of 90 days", said the entity in a note, estimating that this could reduce the cost of electricity by 25%.

Taxes account for about 30% of energy bills, with 4% of federal PIS and Cofins taxes, while charges that cover everything from programs such as Luz Para Todos and various subsidies to the activation of thermal plants are equivalent to 14% of the total.

Bolsonaro is against the increase in the price of electricity and gas bills

Experts have projected double-digit increases for tariffs in 2021, which even caused irritation in President Jair Bolsonaro, who said in February that the government would “put its finger on electricity”, which he pointed out as a “problem” .

The 39% natural gas increase starting next month also drew criticism from the president, who said on Wednesday that the state-owned company's move was "inadmissible", although with the caveat that it would not interfere.

One of the main factors behind the rise in the price of electricity was due to the use of thermal plants since October last year, in addition to the rise in the dollar against the real. The US currency has a strong weight in the IGP-M, an index that corrects part of contracts in the electricity sector. The production of the Itaipu hydroelectric plant is also quoted in dollars.

Aneel's general director, André Pepitone, said that the agency should present its proposals for tariff relief within two weeks.